Sensex, Nifty rally over 1% each after Trump announces Israel-Iran ceasefire

Indian Express

3 hours ago

Domestic equities opened on a strong note on Tuesday, mirroring gains in Asian peers, as investors' risk appetite increased after US President Donald Trump announced that Israel and Iran have agreed to a ceasefire.
The BSE's Sensex rallied 1.04 per cent, or 851.66 points, to 82,748.45, while the Nifty gained 1.03 per cent, or 256.15 points, to 25,228.05, in early morning trades.
Among Asian indices, South Korea's KOSPI advanced 2.08 per cent, Hong Kong's Hang Seng rose 1.94 per cent, Japan's Nikkei climbed 1.07 per cent and China's Shanghai Composite jumped 1 per cent.
'The dramatic developments in West Asia culminating in President Trump's announcement of a ceasefire indicate that the worst of the conflict is over. The sharp reactions in the crude oil and stock markets suggest the geopolitical situation limping back to normalcy,' said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.
The US President said that Israel and Iran have agreed on a complete and total ceasefire.
'On the assumption that everything works as it should, which it will, I would like to congratulate both Countries, Israel and Iran, on having the Stamina, Courage, and Intelligence to end, what should be called, 'THE 12 DAY WAR',' Trump wrote on his Truth Social site.
'Markets appear to be shifting towards a bullish bias, supported by a drop in WTI oil futures to $66.50, hinting at potential de-escalation in Middle East tensions,' said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
All broader market indices were trading in green, with Nifty Midcap 100 rising 0.71 per cent and Nifty Smallcap 100 gaining 0.67 per cent.
Among sectoral indices, Nifty Auto was up 1.37 per cent and Nifty Oil & Gas rose 0.87 per cent.
The NSE companies that gained the most in morning trades include Adani Ports (3.61 per cent), Shriram Finance (2.77 per cent), Mahindra & Mahindra (2.3 per cent), Ultratech Cement (2.19 per cent) and JIO Financial Services (2 per cent).
Nifty which has been stuck in the 24500-25000 range will now decisively break out on the upside. But whether it will sustain at higher levels will depend on developments on the trade front.
'Since the pause on the reciprocal tariff ends on July 9, bilateral trade agreements have to happen before that. Therefore, markets are likely to respond to developments on the trade front,' said Vijayakumar.
Investors can focus on reasonably valued domestic cyclicals like financials, aviation, telecom and capital goods where safety is higher, he added.